Rev. Rul. 88-28

1988-1 C.B. 310, 1988-18 I.R.B. 20.

                       Internal Revenue Service

                                 Revenue Ruling

    FEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL LONG-TERM EXEMPT

                       RATE, AND THE LONG-TERM EXEMPT RATE

                           Published: April 20, 1988

(Also Sections 42, 280G, 382, 467, 468, 483, 1288, 7872.)

  Federal rates; adjusted federal rates; adjusted federal long- term exempt rate, and the long-term exempt rate.  For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for May 1988.

  This revenue ruling provides various prescribed rates for federal income tax purposes for May 1988 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Finally, Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month.

                REV. RUL. 88-28 TABLE 1
      Applicable Federal Rates (AFR) for May 1988
                       Period for Compounding
              Annual  Semiannual    Quarterly   Monthly
  Short-Term
         AFR   7.22%        7.09%        7.03%    6.99%
    110% AFR   7.95%        7.80%        7.73%    7.68%
    120% AFR   8.69%        8.51%        8.42%    8.36%
    Mid-Term
         AFR   8.34%        8.17%        8.09%    8.03%
    110% AFR   9.19%        8.99%        8.89%    8.83%
    120% AFR  10.04%        9.80%        9.68%    9.61%
   Long-Term
         AFR   8.86%        8.67%        8.58%    8.52%
    110% AFR   9.77%        9.54%        9.43%    9.36%
    120% AFR  10.67%       10.40%       10.27%   10.18%
                REV. RUL. 88-28 TABLE 2
               Adjusted AFR for May 1988
                       Period for Compounding
              Annual  Semiannual    Quarterly   Monthly
  Short-Term
adjusted AFR   5.15%        5.09%        5.06%    5.04%
    Mid-term
adjusted AFR   6.01%        5.92%        5.88%    5.85%
   Long-term
adjusted AFR   7.44%        7.31%        7.24%    7.20%

                   REV. RUL. 88-28 TABLE 3
            Rates Under Section 382 for May 1988
Adjusted federal long-term rate for the current month   7.44%
Long-term tax-exempt rate for ownership changes during
the current month (the highest of the adjusted federal
long-term rates for the current month and the prior
two months).                                            7.44%
                   REV. RUL. 88-28 TABLE 4
       Appropriate Percentages Under Section 42(b)(2)
                        for May 1988
Appropriate percentage for the 70% present value
low-income housing credit                               9.04%
Appropriate percentage for the 30% present value
low-income housing credit                               3.87%

Rev. Rul. 88-28, 1988-1 C.B. 310, 1988-18 I.R.B. 20.